>> with new year's eve days away. we have a programing reminder. megyn kelly and bill hemmer will host fox news channel's all american new year's eve. our coverage starting 11:00 p.m. eastern time on monday. you get your happy new year's message on the show. just text, u text space your greeting to. type u with a u and text, and a space and leave a brief message. and tex at this time to 36288. >> that's it for us. "happening now" begins right now. jon: brand new stories and breaking news.

harris: president obama cutting his vacation short to avoid the fiscal cliff but house speaker john boehner says the people who need to take action are not in the oval office. as the investigation continues into the deaths of four americans in libya we're learning people who were initially blamed are back on the payroll with little or no punishment. unbelievable video. some aquariumgoers getting way too close to a real live shark. as close as you can get without becoming dinner. it is all "happening now." harris: hello, everyone, i'm harris faulkner, in today for jenna lee. jon: nice to have you up here in the big studio instead of down in the newsroom. harris: good to be here. jon: i'm jon scott. there is deadly weather pounding the united states. a powerful winter storm bringing snow and driving rain to the northeast. blizzard conditions in some

areas. it is the same system that brought winter storms and tornados to the south and midwest. at least 12 people have died in this system. we're seeing major travel problems today as well. some areas are getting slammed all night long. anna kooiman personally knows that. she is live in clarks summit, pennsylvania. anna? >> reporter: yeah. good day to you, jon and to everybody at home. last night we actually got caught in the brunt of it as well. the road conditions deteriorated so quickly, we had to stop here rather than traveling a little further northeast. in some parts of the northeast, a foot to even two feet of snow is going to be piled up when all said and done. here it is, i would say, it's reading closer to six but i would say it is a little bit less in some places. we stopped ironically at a church here in clark's summit called our lady of snows church. last year the northeast didn't get a whole heck of a

lot of snow but this year, even sweet baby jesus in the nativity scene is getting to enjoy the white fluffy stuff. the town here of clarks summit, i talked to the borough president, she said last year the lack of snow really helped their bottom line, jon, because they had a surplus in their budget. they have even been able to stockpile some of the salt they're using for this snow. as for holiday travelers, trying to make it home, yesterday about 1600 flights were canceled and today so far already 500 flights have been canceled and, jon, newark and laguardia, both of those airports are operatings on a one-hour delay currently. jon: didn't this same area get hit pretty hard by sandy a few months ago? they must have have a lot work to do? misery on top of more misery. >> reporter: you're absolutely right about that. governor andrew cuomo is warning power companies to be on their toes because of this they were criticized with the slow response to get the power cut back on.

many residents in the dark and the told for a couple of weeks. the governor activated his emergency operations center in the state of new york as the upper portions of the state were expected to get a whole lot of snow but for the kids at home, i will mess up my goldloves here. they're not making the best snowballs. jon: really? i thought it was, she has a good arm. >> reporter: i think i sprayed my photographer in the face a little bit with my fancy new gloves. jon: is that hat, a fox news issued hat? that is proper equipment for this weather. >> reporter: called, keeping you warm. jon: should have told the assignment desk you wanted to go to miami. >> reporter: next time yeah. pack up a bikini instead after toboggan. jon: an ney -- anna in the midst of it. harris: this is causing travelers time and money as

their flight plans have been greatly altered in some cases. some can't get back home or back to work after christmas. they're wondering if they will get out of town for the next holiday, new year's. there are major flight delays spill out in the last few days. another system is forecast in the next few days. on the phone is heather hunter spokesperson for aaa. >> thank you for having me. harris: your team at aaa is expected to come to the rescue of hundreds of thousands of drivers this holiday season. that is fraction of people on the roads. what are you dealing with? >> yes, aaa is projecting 84 million motorists will be on the road for the year-end holiday season and we're also expecting to come to the rescue of 1.2 million of them. we did, and that is for a variety of issues including dead batteries. also we looked back at 2010 when a nor'easter hit during the christmas season and at that time we came to the

rescue of 38,000 motorists for vehicle extraction. >> that means they're on their cell phones or they're doing something putting on the holiday red lipstick or something. it would really help if people were ready for the worst? >> yeah. definitely for winter driving you want to be prepared and be flexible. check the weather along your route before you head out. if you can, aler your plans to avoid the worst of the storm, please do that. also you want to make sure your car is ready. your wiper blades will clear your windshield in one swipe and have plenty of window washer fluid with anti-freeze detergent within it so it doesn't freeze up. harris: i learn ad trick when i was living in minnesota. you can pour that out on your windshield and make headway if the ice is building up. quick question. you talk about emthings people can do with their cars. you mentioned car batteries. can we check our batteris? how do we keep that from

happening? >> you can. aaa has a battery service, and test your batter at this. if you need a new one we can put it in. harris: might want to do that before the snow hits. how does this year compare to others. >> in terms of holiday travel, we predict 93 million americans will travel by all modes of transportation. that is the highest we've seen since 2006 and 7. in terms of motorists the people traveling by automobile this is the highest number we've seen over the past decade. harris: that is lot of people on the road. heather, thanks for joining us on the phone from aaa. >> thank you. jon: some new information on the libyan attack that killed four americans on september 11th this year. we're learning some of the state department officials who were placed on leave after that scathing report on security lapses that led to the deaths they're back on the payroll. peter doocy is live in our washington newsroom with more on that. so what is the state

department's explanation, peter? >> reporter: jon, last week on december 19th the state department spokeswoman, victoria knew land put out a statement said in plain english their accountability review board that looked to what happened in benghazi on september 11th had flagged the performance of four officials. this is a quote. the secretary has accepted eric bosswell's decision to resign assistant secretary for diplomatic security effective immediately. the other three individuals have been relieved of their current duties. all four individuals have been placed on administrative leave pending further action. but, the "new york post" is now reporting that eric bosswell has not resigned and all four of those stated department employees are still on the state department's payroll. >> just shifted the deck chairs and they want to make the american people believe that the state department has held people accountable for their lack of security and sending help to four

brave americans. this is incredibly inept of the state department to think that they can continue to fool the american public, pathetic. >> reporter: we've reached out to the state department for further comment but they have not yet denied or clarified any of this. jon? jon: hillary clinton obviously runs the state department. she is on her way out. john kerry, the nominee to replace her. is this going to affect his confirmation hearings at all? >> reporter: jon, the state department says at their end they're trying to keep things as smooth as possible. >> secretary clinton as you heard her say before has pledged to have a smooth transition with her successor. i don't have any phone calls or other activities of hers to read out other than say she continues to be on the mend and continues to recover. >> reporter: we know that republican senators still have a lot of questions for secretary clinton. just a few days ago senator lindsey graham says he wants to go all the way back once

again to those sunday show appearances ambassador susan rice made that are now-infamous and find out once and for all if secretary clinton was not available to go on the shows because she was sick and giving grief counseling. jon? jon: peter doocy. thank you. harris: an even bigger scandal may be brewing in d.c., one that could raise taxes for every single american. we can't emphasize that enough because that would be a big chunk of money coming out of your paycheck. while the president cut his holiday trip short to come up with a plan on the fiscal cliff, house speaker john boehner says the people who can prevent us from going over it are not from the white house. i want to read you what is coming into other newsroom in the urgent queue. this is spokesperson from senator mitch mcconnell's office. last night the president called senator mcconnell, the first democrat to do so on the fiscal cliff since thanksgiving and other leaders to talk about the need for the senate to act. the leader is happy to

review what the president has in mind but to date the senate democrat majority has not put forward a plan. when they do members on both sides of the aisle will review the legislation and make decisions on how to best proceed, end quote. this is a serious back and forth. let's get some perspective. chief congressional correspondent mike emanuel is live for us in washington. a short time ago, another key lawmaker did not sound very optimistic, mike. >> reporter: harris, you would be right. that would be senate majority leader harry reid. seemed kind of irritated that house republicans and all house members are not here in washington trying to work out a deal on the fiscal cliff. here is more from leader reid a short time ago. >> if we go over the cliff and it looks like that's where we're headed, mr. president, the house of representatives, as we speak, with four days left after today before the first of the year aren't here with the speaker having told them they will give them 8 hours notice. i can't imagine their consciences.

>> reporter: of course president obama has left hawaii. he is heading back to washington from his family vacation. we learned from the white house that the president had made calls to the top four congressional leaders mcconnell and boehner on the republican side, pelosi and reid on the democratic side. we'll see what the president has in mind when he touches down back in washington a little later this morning, harris. harris: mike you mentioned it. i'm mentioning it too. it is coming into the newsroom from senator mcconnell's spokesperson and just wondering what the republicans say they want. they want to review legislation and make decisions how best to proceed. they're waiting for now the white house to make the next move. >> reporter: there is definitely a game of chicken going on where the senate democrats are saying, well we need to know from mcconnell what he is willing to do. mcconnell is saying i will not rubberstamp a plan i haven't seen so you need to lay out a plan. we know from speaker boehner's spokesman he is in ohio. he will let us know if he is

coming back to washington. we expect there will be a conference call with house republicans later this afternoon to talk about the way forward on the fiscal cliff. we got this from another house republican a few moments ago. >> we're going over the cliff because frankly i believe it is what the president wants. if you go back and look how he has handled this negotiation from the very beginning, go back and look what his own administration has been telling him for years. that tax rates need to go up on everybody. this has been the president's position i believe from the very beginning and i think that's where we'll end up. >> reporter: the president suggested a christmas holiday, maybe a cooling-off period, a time for lawmakers to go home and think what they want to do about the fiscal cliff. it sounds like post-christmas everybody is more pessimistic than ever. harris? harris: they have got travel woes too right now. there are people who might want to get back to washington and can't as they wait for certain snowstorms to move along. mike, thank you very much. >> reporter: thank you. jon: you knew the fiscal cliff could hit you hard in

the paycheck should we go over it but do you know what it will do to your grocery bill? what could happen to the price of milk come the 1st of january if washington can't make a deal. my teenage son is going to not like that. forget stealing mail. police say this guy went bigger. the unbelievable way investigators say he spent his christmas.

jon: now some crime headlines we're keeping an eye on. a police officer killed while on patrol in suburban milwaukee on christmas eve. now her husband is behind bars, arrested on a tentative charge of first degree homicide in his wife's death. her body was found shot several times after she stopped responding to radio calls. well a mail thief raises the stakes. police in anchorage, alaska, say this guy, clifford, dancer, stole four mailboxes this holiday season. and not private mailboxes.

he stole the big blue ones they say, the kind you find on street corners. got busted when he tried to cash a check someone dropped in one of those boxes. >> a notorious chicago mobster dies in a federal prison. frank calabrese, senior was convicted in before in a role for raketeering conspiracy that included 18 murders over several decades. he was 75 years old. harris: new information now on the so-called fiscal cliff. if congress and the president can not find a solution most americans will see thousands of additional dollars taken out of their paychecks next year and on top of that you will be paying even more at the grocery store. for example, no compromise means milk subsidies will end. and the cost for a gallon of milk could double. dominic di-natale has latest details from los angeles. so, dominic, has the fiscal cliff crisis gotten so bad that even the price of milk is being affected? >> reporter: certainly is,

harris. can you imagine milk hitting six to eight bucks a gallon? we're heading toward that because a new farm bill stalled in congress. under a archaic 1947 law, unless the new bill is passed by december 31st, the government will be forced to buy vast quantities of milk at twice the wholesale rate. two bills are in congress. the senate passed one for $23 billion in savings. the house is looking to enact 35 billion. the sticking point the full house of representatives hasn't approved the bill. >> the farm bill is like this low hanging ornament on the congressional christmas tree that if they just embrace it, they can automatically come up with tens of billions of dollars in budget savings. and then they can figure out where else they need to cut spending after that. >> reporter: the secretary of agriculture tom vilsack has said his department is preparing a case the permanent law comes into effect. temporary solution is to attach a farm bill extension to the fiscal cliff legislation. harris?

harris: is there anything besides milk we need to be aware of? are we looking potentially at higher prices among many farming commodities for example? >> reporter: yeah. it is not just the cows. it is the crops too. it is possibility the government could end up being biggest customer to farming harris. >> things like wheat and corn, their permanent farm law price supports wouldn't kick in until the growing season. those pieces of legislation are tied to the growing season for those crops. that wouldn't be until the spring. so really mill is the first but the no the only commodity that would be affected in the absence of a new farm bill. >> reporter: so it has a much bigger impact. congress meeting today and tomorrow to hammer this out. everyone we interviewed on this keeps saying they can sort this out really quickly but so far, harris, no sign of the political will power to get it done as we fall off what they're calling the dairy fiscal cliff, harris. harris: the problem for this no matter how much you make, it is not about taxes coming

out of your paycheck are we all need food so it hits everybody. dominic, thank you. jon: the dangerous winter weather taking a toll on us air travel and not just in the skies or those crowded terminals. what happened after this packed jet liner skidded off the runway. plus a high-tech suit bringing some real life miracles. the technology straight out of "iron man", that puts paralyzed people back on their feet. >> did you ever think you would be able to walk again? >> no. but in my mind i always told myself that i will. even with the doubts of the doctors sometimes. i still told myself that i will and my son kept reminding me. so i knew i would get back on my feet. hmm, it says here that cheerios helps lower cholesterol

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jon: just in to "happening now", reports that big winter storm hitting the northeast is not just taking a toll on motorists. look at this. a packed jetliner in long island, new york, after it somehow skidded off the runway but not during landing. it was taxiing for takeoff. the tampa-bound flight was carrying 129 passengers when it somehow veered off the runway, exited the runway

says the airline and ended up in the grass. a spokesman for southwest airlines says, it's not clear how all of this happened. nobody was hurt. the investigation though is ongoing. you know those people on board are plenty frustrated. harris: jon, the doctor is in. and today we take a look at a medical break-through that seems to take some notes straight from the comic and movie character, "iron man" himself. it uses robotic exo skeletons to get people unable to walk back on their feet. fox news medical a-teamer dr. marc siegel is live here in new york. this is one of the stories you want to see more and more of. >> harris, this is really incredible and the truth is there are no drawbacks to anything like this. this is something that is brand new discovery. it uses a 48-pound robot. it is developed by the army for use in the military which where they had to carry very heavy packages across iraq and other areas. and now the rehabilitation medicine people have gotten

ahold of it. it use as computer. it uses wireless chips. it uses motors and allows someone like manny maldonado to walk again where before he couldn't. let's look at manny to see what he has to say. how does it feel, manny? >> it feels great. i mean, this brings a smile to my peace every time i use this. excuse me. every time i use it. just like, it gets better as you use it. get more used to it and hopefully eventually i will be on my own in this thing. but it feels great, being able to take these steps. >> you're watching your legs move? >> yes. time to time i look down to make sure i'm still positioned right but i try not to as much as possible. this way i get used to it without thinking about it, so. >> this, bring your spirits up? >> yeah. i mean -- >> i see you smiling. >> it is always all about

kids. this is like, one of the biggest ego boosts that they made. i'm just fortunate enough to be a test pilot. >> harris, this mt. sinai medical center where manny is. and the doctor in charge of it of the program over there he says he thinks the technology is really the way to go now. we've been spending so much time on nerve growth factors and chemicals and haven't led to this. which is allowing a paralyzed person to walk again. it cuts down on blood clots. improves circulation. better for your muscles and your bones. it is all around win, a miracle actually, a game-changer and i am positives the psyche. you saw the spirit of that man. he is really, really excited about this ability. harris: we should tell everybody because of a car accident he was in. >> he was paralyzed from the nipples down. he thought he would never walk again. he wants to get to the point where he can use it home. that will probably happen. it is 100,000 to $140,000 per unit but we expect the

cost to go way down. harris: like anything else, the more people buy it the cost will go down. >> the technology improves and gets easier and easier to make. hopefully insurance will cover it. harris: before i let you get away, when we see someone doing the work of your missiles, my question, do your muscles get much of a workout because that is the part of the healing process, isn't it? >> this device uses your arm and gets your legs moving. it is tied into your knees and your thighs. the answer to your question, the more that happens more atrophied muscles come back. you strain them. it prevents blood clots. it is better for your body, better for your muscles. this is an incredible holiday miracle. harris: his facial muscles are getting a workout because he is smiling. >> he says i can do jobs i never would have been able to do before. harris: dr. siegel, thank you very much. great to see you. jon: fabulous technology there. we are tracking the deadly storm system dumping snow

and creating dangerous conditions for drivers in the northeast. and another storm is about to pummel the same general area. maria molina in the fox extreme weather center. she's up next. it is raising new concerns lawmakers might not reach any kind of a fiscal cliff deal before we go over it in the new year

jon: fox news weather alert for you now. winter storm warnings in effect all over the northeast. its the same storm that brought blizzard conditions and tornados to other parts of the country. blamed for at least 12 deaths so far. it is causing major problems for anyone trying to travel in that part of the country. maria molina is in the fox extreme weather center with the latest for us. >> jon, that's right. the storm system is causing all kinds of travel headaches along the roadways in upstate new york and across new england. we actually have another storm system, if you can believe it or not, right on the heels of this storm and impacting portions of the are northern plains, introducing areas of light snow and not forecast to intensify what this storm was producing tornados and all kinds of blizzard conditions. nonetheless, when you have a storm roll through last thing you want to hear you will get another system. this should impact portions of the east coast as you head into this saturday. should deal with more areas of snow across parts of the

northeast including here in new york city. coastal areas, new york city has been dealing with mostly areas of rainfall across our area and also the strong winds, gusting over, 30, 40 miles an hour at times. they were very strong in the overnight hours. i don't know if many of you really heard it. parts up state new york and maine we still have the heavy snow coming down. by the time the snow gets out of the northeast, we could see totals over two feet in upstate new york that is incredible amounts of from the storm. not too bad as far as travel goes in laguardia. delays averaging 30 minutes in laguardia. 20 minutes in philadelphia international. we could see some of these worsen. the storm is exiting and should be smoother days if you're heading to the malls to do returns or traveling heading back home after the holiday season. storms are coming home. winter storm warnings in effect not just because of how much snow we're looking

at. when you factor in the wind you have whiteoutout conditions and dangerous conditions on roadways. some of these are in effect until tomorrow morning. we're seeing snow come down during the overnight hours. how much additional snow to what you already have on ground, we're talking another foot of snow or more across widespread areas in the state of maine and also northern portions of upstate new york and you see this second little batch right here, jon? that is actually our next storm system that should be dumping several inches of snow across parts of the state of pennsylvania. we have lingering wind advisories across virginia and western parts of the state of north carolina but we're not really dealing with any rainfall or snowfall right now but those wind are still howling, 30 to 40 miles an hour or even greater at types. temperatures west of the storm, very cold, teens in rapid city and minneapolis at this hour. jon: so that second storm you were talking about is that headed to the same general area? >> same general area but not as bad as this last one. you will get just a couple inches of snow from this one.

jon: i like a little snow. >> me too. jon: but i'm weird. harris: you like a lot of snow. >> thanks, maria. harris: this storm system is forcing cancellations of flights coast to coast and could delay the return of senators and representatives to the nation's capitol to tighten the window of opportunity for the fiscal cliff. peter barnes is live at reagan national airport. how does it look where you are? pretty empty. >> reporter: well it is pretty normal right now, harris. it seems to be running normal now for members of congress who are trying to get here as well as folks traveling for the who today's. just a few cancellations and delays up on the boards but i can't say the same for airports up there in new england that maria was just talking about. i looked at the schedule for bangor, maine, for example, and i saw flights canceled in bangor for washington, d.c. as well as new york. now nationally we've seen fewer flight cancellations than yesterday.

548 so far today, compared to nearly 1800 yesterday. about 700 the day before, but you can see the domino effect of a storm on the entire system at this map on flight radar 24.com. all the orange airplanes on this map represent flight delays of five minutes or more. and you can see most of them are orange right now. now members of the house do not have to come back to washington right now for a vote on anything. there's nothing for them to vote on. house speaker boehner has not called them back into session. he says he will give them 48 hours notice if he plans to do that. the senate is back in session considering some legislation not related to the fiscal cliff today. i asked a spokesperson for senate democratic leader harry reid if all the democratic members would be here in town for a possible votes? he didn't get back to me. a spokesperson for the republican leader mitch mcconnell said however, that delays for republican senators are certainly

possible. they got two of them in maine, harris. harris: right. the speaker is in ohio. so you have some pretty hard-hit areas. >> yeah. harris: what kind of advice are airport officials giving members of congress actually trying to get back to work? >> reporter: they're giving them the same advice we mere mortals get. take a listen. >> we would tell a member of congress the same thing we would tell any other traveler, check with their airline before they head to the airport to make sure their flight is on time. things in washington are in real good shape for their arrival. >> reporter: if there are any votes on the fiscal cliff later this week in the senate, the weather should be fine. that is system should be north of new england by then. we expect, i guess the senators, all of them should be here for that vote, any vote but we're not sure if the house is going to come back, harris but the weather should be clear. if they are, they should be

able to make it. harris: you talking about situations not necessarily weather-related, peter. >> reporter: yeah. this is true. they are politically related. politics. harris: a storm of its own. peter barnes from the fox business network. good to see you. thank you. jon: well, one washington resident having no trouble getting back to the nation's capitol to continue those fiscal cliff talks, the president. of course it helps when you have your own airplane. the president arrived at andrews air force base moments ago enroute to the white house as a new poll is out showing americans are growing less optimistic that our leaders will reach some kind of a deal to avoid a fiscal cliff. take a look at this new gal lup poll. it find half of americans believe lawmakers will come to some agreement. that is down from 58% from just a few weeks ago. amos snead, former press secretary for former house republican whip, ray blount. doug furnell former

communications director for congressman chris van hollen. they will give a fair and balanced debate today. doug, john boehner said look, we tried to get something. we got part of a deal out of the house of representatives. it is now up to the democratically led senate and democratic president to come up with some kind of plan we all can vote on. how do you respond to that. >> i mean i think that is kind of ridiculous. everyone knows if the president made a deal with harry reid it wouldn't go anywhere in the house. john boehner couldn't even pass his plan in the house. that was something that was worked up by him and eric cantor and others. so the real test here and i think challenge the president and john boehner sitting down again over the next three or four days. i think we have a few more days. we go over the cliff on the first but the new congress isn't sworn in until january 3rd. if they can work out, maybe just a small deal now. maybe down payments on cuts. maybe it is protecting, certainly protecting tax cuts for the middle class

and small businesses and doing, you know, a few things to medicare, and then that gets us into next year where we can do bigger stuff like corporate tax reform and larger reforms to the tax code. jon: amos, what do you think about that proposal? >> that proposal, the whole situation is telling. we didn't have to be here. we all saw this coming for months. we knew it was coming. doug is right, house republicans did act. they acted to stop the defense cuts and stop the tax hikes. what happened since then, senate democrats have done nothing with it. i think president obama, senator reid, they have to bear some responsibility they haven't moved any of this house-passed legislation. it is time for president obama and senator reid to act. >> one thing an amos piece. senate passed a bill which protected folks making 250 and less and small businesses from a tax increase. that is collecting dust in the house right now. jon: well, doug, let me throw it back at you, this is the same senate that hasn't passed a budget in three years, even the president's budget got no votes in the senate the last

time around. how can they lay all of the blame at the feet of the house of representatives? >> i would say, look, i think everyone shares in the blame what is going on here and but i do think that what you're seeing on the house is this, a almost a reluctance to take yes for an answer the president has put forward a plan which results in $2 trillion in total spending cuts. protecting tax cuts for the middle class and small businesses. 98% of individual, 97% of small businesses. he has talked about doing some entitlement reform. if i was republican i would say, you know what? that is perfect. i'll take it. that is stuff they have been working on for years and they weren't able to accomplish it under george bush. i just feel like the president has bent. he has worked and tried to compromise with john boehner and john bain are i think has to as well but he has 80, 90 house republicans who are unwilling to do anything on tax rates for the rich. jon: amos, how do you respond or how should john

boehner respond? >> i really do like doug but i think he what he is saying is little bit ridiculous. house republicans have acted. there is no reason for them to bring everybody back to d.c. because there is still legislation pending in the senate that can't be brought up. i think next few days, what we should be watching for is leadership from president obama, some leadership from harry reid in the senate and i think maybe we can work a deal out. with doug everyone share as little bit of the blame here but i think right now we should pay attention to the senate and see if senate democrats will actually act. jon: you use ad interesting turn of phrase in the last answer. you said the president has talked about doing some entitlement reforms. doesn't everybody in washington acknowledge that entitlement programs, social security, medicare, so forth, are the big drivers of our nation's debt problem and are going to have to be tackled seriously? >> well, republicans ran millions and millions of dollars of ads against democrats when we actually did reform medicare as part of the affordable care act. we saved about $715 billion

and that was a talking point for republicans over the last election. so, getting lectures from republicans on doing something on medicare is kind of ridiculous when the only thing that they have done on medicare is actually broaden a prescription drug plan over the last 10 years and made it bigger. jon: amos, what is your response? >> what i would think would be the best to happen for the senate democrats to actually ask and spend 2013 talking about corporate tax reform, increased government efficiency, lower government spending but instead we have waited for harry reid and democrats to act. now we're up at the last minute situation i think could have been totally avoided. >> but think, amos, we weren't waiting on harry reid. we're waiting on john bain are is trying to push the gimmick plan b plan through. i think that should be acknowledged there. jon: we'll have to leave the discussion there. the fiscal cliff grows every closer. are we going over it? we'll see. doug, amos, thank you both for being with us. >> happy holidays. jon: thanks. harris: parts of the southern part of this country cleaning up from

deadly christmas day tornados. one church is finally starting to rebuild more than a year and a half after a huge twister, an ef-5 hit the town. the tough lessons they learned on the road to rebuilding. a wild scene as a sinkhole swallow as city bus. how did that happen? [ male announcer ] when was the last time something made your jaw drop? campbell's has 24 new soups that will make it drop over, and over again. ♪ from jammin' jerk chicken, to creamy gouda bisque. see what's new from campbell's. it's amazing what soup can do.

jon: new stories coming up for you next hour.

toyota agrees to pay as much as $1.1 billion to settle claims by drivers that its vehicles suddenly and unintentionally accelerated. the company says the deal will resolve hundreds of lawsuits from toyota owners. the wife of a florida millionaire who vanished six months ago says she is stuck in financial limbo as police try to figure out if she's a widow or an abandoned wife. her husband, a 35-year-old brazilian-born oil and gas magnate, was last seen driving his motor boat through port everglades florida. sips then there is family battle over his $100 million fortune. a brand new study finds decline in obesity rates among young children from low income families. centers for disease control saying it is a sign the obesity epidemic might soon be under control. harris: an eye-popping scene in southern california. a sinkhole swallowing a city bus.

a water main break caused major flooding in oceanside and tore apart the road. the driver didn't know that and drove the bus head first right into it. he was able to crawl out of a window safely. nobody else was on the bus, fortunately. the city had to turn off water for 400 homes to fix the problem. a public works official saying it is good reminder not to drive through standing water, sometimes there is no road underneath. jon: good reminder. right now parts of the south getting a look at the devastation caused by tornados that swept through on christmas day. a feeling one alabama church knows all too well. alberta baptist church in tuscaloosa, crushed by an ef-4 tornado in april 2011 and just now after more than a year of working through red tape, the congregation is finally rebuilding. they hope 2013 will bring them a fresh start they have wanted for so long. elizabeth prann has details from atlanta. so after so much destruction

is it common for churches to rebuild on the same site? >> reporter: well, it is much easier said than done. churches need not only to go through fema but have to make sure they get their insurance claims approved and make sure all of their building codes are up-to-date. so a lot of churches simply don't have the resources to rebuild. one of the churches damaged beyond repair was alberta baptist. it has been serving the community in tuscaloosa since the 1920s. since the storm hit congregants were holding sunday services at a church miles away but many say the spirit of service remains on the old site. after a year and a half weighing advantages to another cheaper location, church leaders say god wanted them to stay on the property. >> we felt assured that god wanted us to come back where he planted us in the first place. so it wasn't a casual decision. it was not emotional decision. it was a decision that was based in prayer, based on

what we really think god wants us to do. >> reporter: now for the past year-and-a-half they have been holding weekly meetings in a very chilly parking lot and they're looking forward to having a roof over their head jon. jon: when does that happen? when do they get services in their new building? >> reporter: they broke ground just weeks ago but hope to have the first service christmas eve, 2013. they told us it has been a very difficult year-and-a-half but it made them a stronger unit. listen. >> it forced us even more as a church to get outside of the four walls of our building and get out in the community. we've had our greatest impact, i believe, on the surrounding neighborhoods near our church since the tornado. >> reporter: members telling us they're breathing a sigh of reef because the construction site was spared after these most recent tornados that hit alabama on christmas day, jon? jon: let's hope they get it all done and keep to the

asked you, open by christmas next year. elizabeth prann, thank you. harris: hundreds of people being told to get their things and evacuate right now. a volcano is erupting, shooting ash clouds and spewing hot gas and it is just getting started. and it's the last thing these aquariumgoers were expecting. a 33 ton "shark tank" suddenly burst wide open spilling out. sharks!. jon: uh-oh. re all having such a great year in the gulf, we've dided to put aside our rivalry. 'cause all our states are great. and now is when the gulf gets even bett. the beaches and waters couldn't be more beautil. take a boat ride or just lay in the sun. enjoy the wildlife and natural beauty. and don't forget our amazing seafood. soome to the gulf, you'll have a great time. especially in alabama. you mean mississippi. that's florida. say louisiana or there's no dessert. brought to you by bp and all of us who ca the gulf home.

jon: fox news alert. maria molina has been telling you to take it slow and easy in this bad weather. here's an example as to why. here is the new jersey turnpike, southbound, mount laurel, new jersey. live pictures from our wtxf chopper, as, well, three people have been killed there in a multivehicle accident. two tractor-trailers, two cars involved, and three people are dead. what caused it? we don't know. you can see the huge backup on the turnpike southbound. it actually has been closed because of this accident. we'll get more details as they become available, but if you're driving out there today, take it easy. right now some new information on some stories we're watching around the world.

former south african president nelson mandela has been released from the hospital. the 94-year-old is receiving medical care at home we're told. he was hospitalized earlier this month for a recurring lung infection as well as gallstones. several hundred people in nicaragua being evacuated after a nearby volcano started spewing hot gas and ash. the country's highest volanic peak and the most active. panic at a shopping mall in shanghai, china, when a giant shark aquarium suddenly burst. the 33-ton tank sending water, fish and shards shards of glass everywhere. 3 people were hurt. fortunately the starks didn't get very far. harris: let's look ahead to 2013 and perhaps the most important issue on american finds will continue to be the economy. there are new signs today, that 2013 should be a good year for us.

dominick tavella, financial advisor and president of certified financial consultants is here in studio with us. dominic, you say there are three bright spots really the headline in this? >> once we get past the fiscal cliff we know it will take some dollars out of the economy, whether it is higher taxes or entitlement cuts. it will create a little bit of a shock to the economy but there are bright spots we should look for in 2013. harris: there are three you said. what are they? >> housing, energy and huge amount, trillions of dollars sitting on the sidelines by corporate america, waiting to come into the economy once this picture clears up. harris: we're getting housing numbers coming this week already. we're starting to see prices rose a little bit this fall. that is a good sign. we're seeing housing starts have come up as well. so i understand that. energy. >> energy is a game-changer, it really is. we look what is going on around the world. the europeans, far east, they're paying over $17 a btu for natural gas. we get it for $3 in this country. dow chemical just proposed

building the largest chemical plant it has in the world here in this country because of the competitive advantage of natural gas. imagine if we could liquify, ship it to europe, ship it to the far east. not only would we have a huge impact on trade balance but actually help the economies out too. game-changer. harris: you mentioned cash on the sidelines. where is that coming from? >> corporate america and consumers, and we saw it this past christmas now with sales, have been holding onto their cash. they are worried. you can plan for anything as long as you know what the ground rules are going to be. washington has not given us the ground rules. once that clarifies i know it will have negative impact short term. corporate america will say, you know what? we will go ahead and build the plant. we'll go ahead and hire. we'll put money into the economy. it is estimated between one and $3 trillion sitting on the sidelines. harris: tell me what the deal is so we can go forward, is that it? >> higher taxes and entitlement cuts. harris: before you go, i hear a huge however, in all

of this and that's because the only thing you say would slow down a positive outlook is the federal government getting in the way. you know they're pretty good at that. >> look what happened, not only 12 months but really the last almost four years the economy should have been on a natural high. it has its own momentum, its own natural growth. unemployment has been historically terrible on these kind of recoveries. washington interfering with the natural growth of the economy. we do need to get them out of the way. we need them to make decisions give ground rules and make a head of steam. harris: you call white house, call congress, let us know how it works out. >> i've been down to washington and talked to political leaders. everybody is in one camp or the other. somebody has to give. we hope they compromise soon. harris: dominic, thank you, a financial advisor giving us advice today. thank you. >> have a great day. harris: you too. jon? jon: a brutal storm, harris, slamming the northeast right now. it has been blamed for at least 12th deaths already.

we're keeping an eye on it already. hope you stay safe. don't try to venture out in the blizzard. new outrage what is going on in the state department. the public was told four officials stepped down after a critical report detailing security failures in benghazi but did they really leave? why are they still on the payroll? details coming up. o. your soups are so awesomely delicious my husband and i can't stop eating 'em! what's...that... on your head? can curlers! tomato basil, potato with bacon... we've got a lot of empty cans. [ male announcer ] progresso. you gotta taste this soup.

we've got a lot of empty cans. i played a round of golf.id in the last five hours? then i read a book while teaching myself how to play guitar; ran ten miles while knitting myself a sweater; jumped out of a plane. finally, i became a ping pong master while recording my debut album. how you ask? with 5-hour energy. i get hours of energy now -- no crash later. wait to see the next five hours. jon: well, the holiday travel headache rolls on as a storm that has killed a dozen people

continues its frozen march north. heavy snowfall expected to keep travel delays in place both in the air and on the ground for millions of americans. and six months after a millionaire goes missing, his family is fighting with his wife over his fortune because she still didn't know, is she a widow or was she abandoned? and also state department employees supposedly punished for the deaths of four americans in libya, they are still on the payroll. we'll speak to the high-profile lawmaker who is calling that department's behavior deceitful and pa pathetic. cash. jon: high noon here on the east coast where a dangerous winter storm is slamming the northeast bringing snow, rain, high winds and very dangerously-icy roads. i'm jon scott. harris: i'm harris faulkner in today for jenna lee. the storm system now blamed for

at least 12 deaths. the storm went through the nation's midsection first, then moved into the northeast causing hundreds of flight cancellations as you know if you've been trying to travel, stranding holiday travelers this week and dumping more than a foot and a half of snow on parts of new york and new england, the very latest, pennsylvania getting hit hard. and that's where we find anna coyman live in cranston at this hour. and, anna, the storm is still punching areas of the northeast. >> reporter: the associated press is now reporting that the death toll has actually crept up to 15, and we're actually in clark's summit, pennsylvania, we did have plans to go further to scranton, but it got nixed because the travel conditions worsened so quickly. it has let up here in pennsylvania, but it is still snowing in some parts of new york state and also some new england states. new york's governor andrew cuomo has set up an emergency operations center and has also warned the power companies that have been criticized for their

slow response of getting the lights turned back on for residents in new york state. he's really telling them to be on their toes. now, here in clark's summit there's still about 4 inches of snow on the ground. i spoke with the borough president who says she's just very happy this wasn't a major event for them. >> it's a snow that hasn't been a difficult one for us. last year we had a budget surplus because of we had no snow. so i'm happy to see the snow, and as long as everybody's safe in it, you know, we have winters, and you enjoy winter sports. >> reporter: and that borough president also telling me they were able to stockpile some of their salt from last year, and that's what they're using for this storm. we've seen plows like this one going by, and they've been working in tandem to work as expeditiously as possible. harris: well, and travel has been a nightmare for so many

people, anna. >> reporter: right. one jet liner actually got stuck on the tarmac in pittsburgh, and then a southwest -- i believe we have some video of this -- flipped off the runway somehow in long island and got covered in mud. fortunately, we're told nobody was injured in that, laguardia's airport, also newark airport operating on a one-hour delay. 1600 flights were canceled yesterday and about 500 so far today. harris: anna, live for us in pennsylvania, thank you. jon: well, president obama is heading back to the cold, just back from his family vacation in hawaii to deal with the fiscal cliff issues. air force one touched down a short while ago at andrews air force base in maryland. we're learning now the president has resumed talking with congressional leaders about trying to solve this crisis that lies just a few days ahead. molly henneberg keeping an eye on that live from the white

house. molly? >> reporter: hi, jon, yes. president obama spoke to the top republican and the top democrat in both the house and the senate when he was in hawaii before flying back here to washington. still no negotiation sessions have been set, at least not publicly, not formally. the president cut short his vacation, he left his wife and daughters there in hawaii and flew back here to washington to be here at the white house for any last minute meetings on the fiscalcliff. the vice president is scheduled to be here at the white house for meetings as well. over in congress the senate is in session, the first time either the house or senate has been in session for legislative business between christmas and new year's since 1970. and this morning the top senate democrat, harry reid, chided the top house republican, speaker john boehner, for not calling house legislators into session. >> speaker boehner should call members of the house back to washington today. he shouldn't have let them go, in fact. they're not here. they are not here. john boehner seems to care more

about keeping his speakership than about keeping the nation on firm financial footing. >> reporter: in response a spokesman for the speaker said, quote: senator reid should talk less and legislate more. the house has already passed legislation to avoid the entire fiscal cliff. senate democrats have not. speaker boehner is in his home state of ohio today. the house gop leadershipship put out a statement yesterday saying the house has passed legislation extending existing tax cuts and putting -- delaying putting off some spending cuts and replacing them with other spending cuts, and they're urging the senate to do the same. jon? jon: molly henneberg there at the white house where we are getting down to the wire. thank you. for more on the efforts to keep the economy from heading over the cliff and the likelihood of reaching some kind of a deal in time, let's talk with susan -- [inaudible] chief congressional correspondent for the washington examiner. what are the chances here, susan? >> hi, jon. i think at this point we're just

simply running out of time. we have only got a few days left. they're so far apart on what an agreement would look like. even if they weren't going to put together a comprehensive deal which everybody agrees there's simply not enough time for. if they were trying to get something together that would stop the tax hikes from coming into effect on january 1st, we've only got a few days. to get a deal like that together and written and passed and signed into law is going to be really, really difficult. it's looking a lot more likely that if there's a deal later on taxes, it will be done sort of retroactively, that we'll come back in in january with a new congress, new house, new senate, and everybody will get going again with sort of different ratios of democrats and republicans. but the fiscal cliff will have happened. and one reason is i think it will be much too hard for the house to agree to a bill that uncouples the tax hikes. in other words, maybe raise taxes on one group, but not another group. that removes the leverage that i think republicans really feel they need in order to get the kind of spending cuts and

entitlement reform that they feel is really just fundamental to reforming the nation's debt and the economy staring down a healthier path. so for that reason, yeah, i don't think they're going to have anything by the end of the week. jon: we just heard harry reid saying, oh, it's all john boehner's fault in the house of representatives. the president also seems to be pointing at the house. where does the truth lie here? i mean, who is, who needs to budge? >> well, technically the house and senate have each passed bills, but they don't agree on the bills that they've passed. for republicans i know from talking to even the most moderate republicans they are willing to vote for a tax rate increase which is exactly what president obama has asked for. but they won't do it unless there are significant spending cuts and the promise of entitlement reform on the table. democrats have really at this point been unwilling to go in that direction. they believe they made cuts a

couple years ago that were significant, and the entitlement reform is something they're not really willing to negotiate on right now because they feel it would, you know, endanger seniors and the poor. so a lot of this really has to do with spending cuts. everybody's focused on the tax issue, but i believe really the key to compromise here is going to be watch what happens with the spending cuts. if they can get significant spending cuts and the promise of entitlement reform, that's when you'll see these negotiations really get going. jon: well, that seemed to be part of what john boehner was bringing forward, the plan b. his caucus was ready to go with the tax increases on, you know, high earners in this country. but they didn't seem to be getting enough out of the white house in terms of an agreement on entitlement reform on spending cuts. >> well, that's right. president obama believed and the democrats believe they have a mandate after the election. now, a mandate, you know, depends what you call a mandate. the election was not really close, but it wasn't also a grand slam for the democrats

either. so there's a real difference in who -- what the mandate is here. and democrats don't feel they need to compromise. i think they think if we go over the fiscal cliff, they will have even stronger negotiating power. that remains to be seen because oftentimes when taxes go up and there is something that hits the economy really hard and puts it into a tailspin, it's the president who takes the blame. so i think even the president is wondering who's going to foot the blame for this one. but at this point i think the democrats feel they have the upper hand at this moment. if they hold tight, they will force the republicans to capitulate. i don't see that happening. i think both sides are really going to have to give in before we get a final deal. jon: so we'll have to see, you know, which side wins the battle of public opinion or which of the branches of government, i guess. >> that's right. it's going to matter -- watch the polling that happens if we do go over the fiscal cliff and we see who's getting blamed for this. but again, even talking to

republicans on a more moderate side, they're just not going to give it all away. they want these spending cuts, and that's where you're having the real problem. democrats aren't going to go along with something significant enough for republicans to agree to a rate increase. don't forget, you're still going to need a couple dozen republicans even if democrats are the ones who pass the bill in the house. you need republican support. and a lot of them just aren't willing to do it without those spending cuts. jon: well, people are going to be howling when they see their paychecks coming out the first week in january, assuming they're lucky enough to have one right now. that's going to motivate the politicians to get this thing solved, one would think. susan, thank you. >> my pleasure. harris: a former president spending the holiday season in the hospital. we will update you on the latest on president george h.w. bush's condition. and toyota owners could be on the receiving end of a massive settlement after hundreds of lawsuits claimed some cars were, in fact, accelerating on their own.

jon: new information now on some political stories we're following for you. president george h.w. bush in a hospital in houston this holiday season. doctors saying the oldest living former u.s. president now moved into the spencive care unit after what they call a series of setbacks. they're adding that they are cautiously optimistic about his recovery. hawaii's lieutenant governor brian schatz tapped to fill the seat of the late senator daniel inn way. -- inouye. he had named a congresswoman to preplace him on his death bed, that was his wish. the governor said he made his decisions in the best interests of his party. and second time's a charm, a new poll shows 46% of americans believe the president's job performance will improve in his second term. 22% are preparing for things to get worse, they say.

harris: in the country where the government is killing its own citizens, new violence we're learning about in syria. anti-government rebel fighters attacking a government base, and we are learning the international envoy seeking a solution to in this 21-month-old conflict is saying political change is needed immediately to end the violence which has already killed an estimated 44,000 people. leland vittert live for us from our mideast bureau with the latest on this. leland? >> reporter: harris, the peace envoy is trying to bring back a plan that was dead on arrival back in june. it doesn't look like there's any budging from either side. president assad still says that he is going to stay on and continue to fight there inside syria. the rebels say they will accept nothing short than the regime falling, all this amid the rebels continuing to make more and more advances, continuing to close the noose, if you will, on the battlefield especially around president assad's

stronghold there in the capital of damascus. russia, though, is continuing to protect syrian president bashar al assad. obviously, that is the transitional plan that something along the lines of what the rebels would endorse would have assad leaf in the beginning -- leave in the beginning. this june peace plan put forth out of geneva calls for a transitional government, a new constitution and then elections. i don't think there's anybody that has much of a hope of that happening. the only thing that may change the russians' minds is they look at a chance the regime in syria is going to totally collapse meaning russia would lose all of its influence in what was one of its strongest allies around the world. russia may begin to maneuver in the back end solely in their best interests, not necessarily in the best interests of the syrian people. and as we're seeing, the syrian people are really under very, very tough conditions as evidenced by how many of them are fleeing their own country. on the turkish border now 150,000 refugees, that number is

now growing exponentially, also on the jordanian border. and each person you see in these videos has to be clothed, they have to be fed, and they also have to be kept warm during what is turning into a very cold winter up there in those mountains between turkey and syria. and this is also expecting to have a lot more refugees come in, and that's what these countries are getting prepared for, because the population centers are now being attacked by the rebels, and that's where the fighting is moving towards, towns like da maas us, homs, ahelp poe, those kinds of areas. that means more people are going to spill over the borders, and there's real, genuine concern of what happens next here. a lot of experts will tell you it looks like the syrian civil war could go on for here -- years, and then what do do with what could be a half a million people living in refugee camps as their country is clearly under the kind of violence we're seeing right now. harris? harris: yeah. and that's not to mention the

growing death toll in all of this. leland vittert, thank you. >> hello, this is 911. do you have an emergency? >> my car, i can't slow it down. >> you can't slow it down? >> no. jon: that terrifying call to 911 from a frantic toyota driver saying he couldn't slow down his car. state p troopers helped to bring the car to a stop, they pulled in front of it and stopped themselves. toyota now reaching an agreement to settle claims from toyota owners who said they experienced the same sudden acceleration. adam shapiro reporting for the fox business network. adam? >> reporter: and, jon, this is one of the largest settlements in the automotive industry. it's got a lot of people raising eyebrows right now. it could be as high as a $1.4 billion settlement when everything's paid out. right now the official settlement is $1.1 billion. anyone who purchased a toyota, essentially, from 1998 through

2010, you'll recall the sudden acceleration issue that drew a lot of attention just a few years ago, and there were, unfortunately, some people who died in car accidents. now, the government actually studied this because it was believed to be a problem with toyota's electronic acceleration system in the automobiles, but they never found any link between the sudden acceleration and toyota's electronic system. a subsequent review, by the way, of that study found that the government wasn't up to speed in looking at it. so at the end of the day toyota hopes to put all of this behind them. they will be paying that $1.1 billion in the form of roughly $200 million in fees to people who purchased cars which have lost some value because it's harder to resell those cars. people concerned about the acceleration issue. they will refit 3.2 million cars with a brake override system, and they'll make payments to people who own toyotas, roughly 16 million vehicles in all covered by this. they will make payments to

people whose cars are not eligible in for the brake overre system. at the end of the day, this possibly $1.4 billion for toyota, they made $12.3 billion last year, so they will be able to put this behind them. jon? jon: i'm sure they look forward to that. adam shapiro, thank you. harris: a woman in florida is in legal limbo wondering if her missing husband is dead or alive. he vanished and left behind a fortune. nice car. she wants it, all of it, but so does the rest of his family. the legal battle she's facing now. and an important recall involving a popular baby recliner. details, stay close. i have a cold, and i took nyquil, but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth! pizza hut's $10 any pizza deal is back. any pizza, toppings, sizes.

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jon: an alert in for all you parents of very young children as four major retailers recall the nap nanny baby recliner. this after reports of kids nearly falling out and even several deaths resulting. nap nanny generations i and ii along with the chill model infant recliners all sold between 2009 and this year. amazon.com, toys r us, bayh baby and diapers.com all willingly

pulling those models from shelves as the company is either unable or unwilling to participate. harris: right now a woman in florida is live anything financial and legal limbo. her millionaire husband vanished six months ago while boating through port everglades. police are now trying to figure out if his wife, jamie, is, in fact, a widow or abandoned wife. at issue, her husband's $100 million fortune. his wife wants it, but so do his siblings, his mom and his uncle. a criminal defense attorney and former prosecutor, brian silver also a former prosecutor. boy, that's quite a pair. let's start with the fight, gentlemen. abandoned or widow? why is that important, brian? >> well, it will make a difference insofar as her rights are concerned whether or not she's going to be the heir of the estate or whether she has to share this estate with other people. and, quite frankly, insofar as her being declared one way or the other, evidence is going to control what's in this case.

first of all, when it comes to being a widow, it's too premature to declare her. you know, she's only six months into the five-year window that's required. the real issue is, is she abandoned? and at the stage we're in right now, an investigation is needed. and the question that bothers me most is why is the family dodging subpoenas by her lawyer? why won't they come in and answer questions? harris: tad, if there's a will, wouldn't that settle it? >> well, it all depends on what the terms are -- harris: tad. >> that's the issue here. if there's a will, it's going to go mainly the majority of it is going to go to his sisters, and that's the thing that the wife is so concerned about. and that's why she's got her lawyers, and she's pursuing money. this all comes down to the big old dollar. and the reason they moved to the netherlands, that's not really important here. his sister angelica has moved to the netherlands, and that's where she has chosen to take her family. there's no evidence whatsoever

that guma's alive and in the the netherlands. my god, think about it, harris, if we can find osama bin laden in pakistan, we can sure find guma in the netherlands, don't you think? harris: i don't know if i'll give that to you. the husband was last seen june 19th. brian, you were all fired up about florida's finest attorneys are in this fight, and it's getting pretty nasty. who should get this money? >> el, we need to see what the facts tell us, what does the evidence prove? and frankly, her lawyer, mr. bill cherry, is one of the finest attorneys in ft. lauderdale. he has the right to investigate this matter. and while being in the netherlands by itself is an innocuous fact, why aren't they answering these questions? >> that's not true. >> the trail of evidence will lead him to the end result, and if it's innocuous and there really is no mr. aguilar living and alive today, come forward

and answer these questions. why can't they tell us what's going on? maybe there's more to the story, and that's why they're not coming forward. but the bottom line is this needs to be investigated, and jamie, as a surviving wife, has the right to know what the truth is concerning her husband. harris: tad? >> well, the bottom line here is if they're hiding money, it's easy to follow a paper trail of money. and this situation is no different than any other paper trail. also how hard would it be to get an investigator in the netherlands to look around, follow the money trail and see if they see anything that doesn't look proper? the bottom line is the only thing that they have done that raises any ire here is the fact that they said, hey, i've moved to the netherlands. i don't want to come back to florida to testify in court. mr.-- >> you know, that would make sense if the business partner didn't move there as well. that's what raises an eyebrow. why is the business family -- [inaudible conversations] are you saying it's a tremendous consequence? it's ridiculous. harris: obviously, and i want to

clear this up for our viewers, because you guys are kind of talking over eastern other. brian, you say all these people have gone to the netherlands and waiting for a payday, and, tad, you say that is no proof that this woman doesn't deserve the money or does? >> i'm saying jamie, the wife, does not deserve the money. the sisters are the beneficiaries of the will, and they should get their share -- harris: regardless of where they're living? >> absolutely, regardless of where their living. harris: all right. of before i let you guys go, one last thing. this woman had filed for divorce. does that matter, brian? >> absolutely not. the question is on june 19th when this guy went missing, were they married or not married? and as a matter of fact, they were married. as his lawfully wedded wife, she is his surviving spouse. and for that reason she's the one who's entitled to inherit the estate, not the sisters. harris: all of it? >> well, depending on the nature of what the will says. in the absence of a will, the

question is were they married or were they not married? being that they were married, she is the surviving spouse, and she is the heir. harris: tad, you get the last word. >> still comes down, does she get it all or a smaller portion, and that's why she has this great lawyer. she wants it all, and she tried to -- she entered a prenup, and that's the other thing that's scaring her. she entered a prenup that she asked the court to throw away, and they haven't ruled on that yet. so she's got two deals she's got to -- two issues she's got to deal with. harris: you'd like to think that love is at the heart of this, wouldn't you? but all we've talked about is money. tad nelson, brian silver, thank you. jon: a nasty storm hitting the northeast after dumping heavy snow from the plains to the midwest. a live weather update straight ahead for you. also new outrage over benghazi. lawmakers are up in arms after learning that the state department never really got rid of the people that it held

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harris: a fox weather alert, and we are days into the system, a powerful winter storm dumping a heavy amount of snow triggering tornadoes and causing hundreds, well over a thousand now, flights to be canceled. mafia molina in live in the extreme weather center. it won't go away. >> reporter: yeah, very stubborn, and we have yet

another storm system on the heels of this one, and i do want to show it to you. even though it's not forecast to be anywhere near as bad as this storm was, it's still kind of insult to injury just a couple of days right after a significant snowstorm moved through your area or some tornadoes ripping through your area during christmas day. so this storm system is slowly getting its act together right now across parts of the midwest and also in the south. by friday afternoon it should be producing some very heavy rain and thunderstorms in the places that were hit hard by those tornadoes, in alabama, mississippi and even down into louisiana. and then as we head into saturday afternoon, snowfall expected across parts of maryland, d.c. you're included in that, philadelphia, new york city and also areas across pennsylvania. snowfall accumulations i'm not thinking are going to be as bad with this next storm, it's a little weeker, but you will see accumulation across portions of the northeast. here's what's going on, just areas of light snow in iowa, parts of minnesota and also into the dakotas. and, harris, the current storm

still producing snow across parts of upstate new york into maine. totals could be over 2 feet by the time this storm exits tomorrow. harris: maria, thank you. jon: well, on capitol hill lawmakers are up in arms over the latest outrage involving the deadly terror attack in benghazi. this after "the new york post" revealed senior officials at the state department who supposedly resigned over security failures are still on the payroll. house oversight committee chairman darrell issa telling the post, quote: it is appalling that the state department would try to deceive the american people about having held officials accountable for security failures that cost four brave lives. jon: florida congresswoman ileana ros-lehtinen is chairman of the house foreign relations -- i'm sorry, foreign affairs committee. congresswoman, what's going on

here? >> this is unbelievable. the state department purposely misled the american people, and after so many web of lies on this benghazi terrorist attack, first they whip out a narrative saying that it was spontaneous protests about a video on muhammad. then they couldn't get away with that, they had to fess up, it was a terrorist attack, and now this. and it wasn't just the members of congress who were misled. look at this new york times headline, and it's one of many: "four are out at state department after scathing report on benghazi attack." except the truth is, nobody's out. they just shifted the chairs and, in fact, if you want to screw up bigtime, get a job at senior levels at the state department, because apparently they don't let anybody go even after this terrible terrorist attack. incredible. jon: well, and this isn't just a minor event. this led to the deaths of our ambassador, the first time that

that's happened in this more than 30 years, plus americans. >> and when you read the benghazi report called the arb, you will see that they talk systematic failures at the state department, management failures where intelligence reports were dismissed. we left the four americans to die there, even though they continually called for added security. now, the state department is going to say, well, they need more money. nowhere does it say that they need more money. the american people know that the state department wouldn't be wasting money on global climate change or culinary diplomacy, they would have more money. they would have all the money they need. but to purposely mislead the american public by making it seem as if there were some accountability at the state department when, in fact, there was none, they've got a lot to answer to, and we'll be hearing from secretary clinton in a few weeks, and this deserves a full explanation on her part. this is demeaning to the

american public. jon: eric boswell was assistant secretary for diplomatic security. secretary of state clinton said she had accepted his resignation, but apparently no one mentioned that he was still retaining his post at the state department as director of the office of foreign missions where he earns $155,000 a year. >> incredible. and the headlines for him is state department security chief resigns after benghazi. this had been reported widely. he resigned title a, but he kept title b and c and d. nobody has been dismissed, nobody has been disciplined. it's, everything is fine at the state department after this terrible attack. unbelievable. unconscionable. jon: any signs that secretary clipton is going to be able to testify before your committee or any other in the house? >> oh, she will. she will come before our committee before january ends, mid january, and not only will

she have to answer about why repeated pleas for more security were ignored, but also this latest dust-up of saying one thing, parsing words so that you're technically not called lying, but it was widely reported that discipline measures had been taken place at the state department. none of it was true. it was just smoke and mirrors as so much is at the state department and at the obama administration. jon: ronald reagan said the closest thing to proof of eternal life is a federal program, but maybe a federal job is just about as close, or so it would seem. >> what does it take? jon: yeah. i wanted to transfer, you know, shift your attention to another bit of good news. john hammer, the former marine who had been shackled to his bed in a mexican prison, he was released on friday. a lot of people may not know that because, you know, we've been in the thick of christmas and everything else, but i know you and your office were heavily involved in helping him get out. what can you tell us about how

he's doing? >> well, we're so happy that he's back. there are constituents of my congressional district. he's sick, you know, that can happen to you after he's been in jail in mexico since august until just last week and under very bad conditions. the parents were getting extortion calls from inmates. this was a terrible situation, a jail run by a drug cartel. when john was doing nothing wrong, trying to comply with the law. but thanks to fox news especially, the parents wanted me to make sure i pass on a word of heavy thanks to "the o'reilly factor," but everyone, sean hannity, everybody did a great job, greta, and john is at home. he's recovering, but he's got a bad stomach flu and a bad cold. so we're praying for his health, and we're sure that he will come out and say thank you to all of the community and all the marines and all the members of congress who banded together in a bipartisan way to get john

home for christmas. amen. jon: yeah. it was a job well done, and, you know, i know your office shares in the -- >> a pleasure. jon: -- as well, and just getting him home for christmas, some people thought it would take a miracle, and it happened. congresswoman ileana ros-lehtinen, thank you. harris: the u.s. labor department reports new claims for jobless benefits dropped last week by about 12,000 to an estimated 350,000. there are still well more than 12 million americans, though, out of work. we do know that. and as we have seen, new jobs most up come from small businesses. time now to spotlight small business owners and how they find a way to thrive in this tough economy. kathy dino is cofounder of painting with a twist. she has a simple conception; a little paint, a little wine and a lot of fun. kathy, thanks for being here. i tweeted this morning seeking feedback from your customers, and, boy, did i hear from them.

and i also heard from people who were curious. my questions come from them. what is paint with a twist, and where is it around the country? >> painting with a twist is a concept where we demiesfy art. you come in, we've got artists, we've got everything you need, and she walks you through painting a painting in two to three hours with music going, you bring your snacks, you bring your beverage of choice. it's a fun night out -- it's a new fun night out. and you learn a little bit about art, but this isn't heavy art. this is art fun, is what it is. and it really gives art to the masses, is what we like to say. harris: well, and what i understand, too, people invite these parties of their friends to come in, and it's the more of a chance for them just to get together than anything else, but there is a piece of art at the end. do you take it home? do you buy it? >> you take it home. your session, your fee to come in includes everything, and then when you leave, you get a piece of art. you can hang it on the wall, you can give it as a gift, you can donate it to somebody.

it's a very good value. classes run $35-$45, you have two to three hours of a lot of fun with your friends, and you get something to take home, and you kind of feel like an artist for the night. my business partner calls it karaoke for art. [laughter] you feel like a rock star when you're doing karaoke, well, you really understand anybody can do art with a little instruction. harris: karaoke is my guilty pleasure. how did you come up with this idea? >> we, renee and i met when our kids were in kindergarten, and we did a lot of volunteer work together. so we knew we worked well together from the get go. and after that we were trying to figure out something we could do, it was after katrina, and we were looking for something to do for ourselves. and a good friend of mine called me up, they're artists in our community, and they said what about speed art or something, and we're like, i don't know about that, you know? and so we kind of built on that, though, and we did a test in my

barn with my friends and a teacher, and everybody had a ball. so we kind of knew we were on to something. and so we opened our one little store in louisiana which is on the north shore of lake pontchartrain, and people were driving two bridges to come. they were loving it. and renee wanted to move, open one in new orleans which is on the south shore of the lake, and i was like, oh, god, no. renee's 15 years younger than me, she's got a little more energy than me -- harris: i can't imagine that. [laughter] >> so she, um, so we opened up in new orleans, and it exploded. it exploded. harris: real quickly, because i want to get to the point, you're a small business owner. you employ people now. how many, and is it franchised? >> it is franchised. we have 80 franchises nationwide, we're in seven -- 16 states, we have 80 franchises. we employ including us nine people in our corporate office, but franchise wide we are one of the -- we are the largest employer of artists, not

employer, we're the largest hirer of artists in the united states outside of the school systems. harris: wow, how about that. kathy dee know, an idea that kind of took shape in her barn. >> right. harris: next time you're having a gathering, i'll be with you, sounds fun. jon: wonder if they could help me paint? harris: yeah. and you drink wine while you do it, so it won't really matter how it looks. [laughter] that's what they say. jon: we'll see. a state with a major unemployment problem coup getting some help -- could be getting some help from our neighbors to the north where recruiters are looking to hire on a massive scale.

harris: "happening now", here's a headline. there are jobs for americans up north. canadian energy companies are recruiting in the states, all part of an attempt to increase oil production and tap into its vast oil resources. in california, with its 9.8% unemployment rate has become a prime target for recruiters. anita vogel is live in los angeles. anita? >> reporter: hi, there, harris. if you're out of work and you have the right experience, canada might be the place for you. the oil and gas industry is creating a mini boomtown up there. so if you're willing to work, canada might like to invite you in. in northern alberta, mining the oil sand is creating plenty of work for unemployed, skilled americans. iron worker mike riordan

left minnesota for alberta's capital city, edmonton, which serves as a staging ground for many of the big oil companies. he is now making twice what he was back home. >> the opportunities are basically endless up here right now. there is obviously a shortage of workers. you could go anywhere and make some pretty good money. >> this is a very comfortable place to come. we're very friendly people. everybody knows canadians are friendly. >> reporter: the average temperature here in the winter hovers around freezing but the province alberta boasts a hose how old median income of $83,000 a year compared to 50,000 in the u.s. so many canadian firms are hoping americans won't worry so much about the weather and focus instead on the cold, hard cash. case in point. pcl. one of the largest construction companies in north america is looking for a few good pipe fitters for starters. >> the average rate is about $40 an hour for a pipe fitter here. if you extrapolate that over

a year. that is 100,000 or more. so, pretty darn good money. >> reporter: for workers with family, the city of edmonton want to make sure they feel at home. >> we basically try to make it as easy as possible to get their kids in school and everything else. >> reporter: the edmonton economic development corporation will be holding a number of job fairs right here in california beginning next year but again, you have to have the right experience, harris. you also have to have a clean criminal record to make the cut. back to you. harris: anita vogel thank you very much. if you want to learn more about this you can log on to foxnews.com and watch anita vogel's video and read her article. jon: cool. an online privacy fight proves almost nobody's photos can be kept secret. we'll tell you how a private photograph, posted by the sister of facebook founder mark zuckerberg, wound up going viral without her consent. and the holiday break might not be the only thing

for parents to celebrate. a new report shows the battle against childhood obesity might just might, be working.

harris: right now a quick check of some of today's developing headlines. funerals now set for the two volunteer firefighters killed in a christmas eve

ambush in webster, new york. they will be laid to rest following separate funerals sunday and monday. police say the men were shot to death as they were responding to a house fire set to lure them in by an ex-convict. the head of the environmental protection agency, lisa jackson, has announced she is stepping down. the move ends a four-year tenure marked by high-profile fights with business groups and republicans. and facebook's privacy settings, even tripping up cofounder, mark zuckerberg's family. you think they could figure this out. his sister posted a picture to a personal profile. she thought she clicked on meant for friends only. it ended up being tweeted by a marketing director some 40,000 followers. so from facebook to twitter in a push of a button. jon: take that. nationwide study giving parents something it celebrate other than the fact that their kids are on

holiday break right now. this as "the new york times" reports that the battle against childhood obesity may finally be working. obesity rates are declining in parts of the u.s. where this system seemed toughest to resolve. dr. marti mccarry, physician of professor of public health at johns hopkins. what is the headline here, doctor? >> we may start to see the ceiling of child obesity rates. for a long time many of us have been saying where is the end? we've seen the rates go up by 10% every few years. this is the first study reported this week in jama from the cdc, kids rate of two to four obesity now holding at 15%. jon: so it is down a couple of percent? >> actually a hair below 15%. the last report was 15%. we still have an epidemic, jon. many people are celebrating. there is no reason to celebrate just yet. kids have diseases now that were previously undescribed,

that are common because they're obesity-related he we still have an epidemic. >> is there any reason given for the slight decline in the obesity rate? >> a lot of people are wondering and saying we need to examine what's working and they're looking at cafeteria food in schools. for a long time taxpayer dollars have been funding all kind of bad and unhealthy foods, both in cafeteria and in the traditional s.n.a.p. program or previously known as the food stamp program. billion in the s.n.a.p. problem alone goes so whatever food they want to use it for. that could be hot dog, pizza, sugary drinks. i've been trying to be a good role model and cut out sugary drinks out of my life. i can take 100 less tablespoons of is you garr a week by cutting out one to two sodas or juices a day. jon: we've been in line in the grocery store see people

paying for some of the worst foods imaginable using food stamps. why doesn't the government, of all things it regulates, why doesn't it regulate what people can buy? >> in fact three leading obesity experts wrote in "jama" and a follow-up editorial that it is time to reexamine the s.n.a.p. program and government subsidies for some of this food because, joon, let's face it, we pay for the bill of the consequences of obesity at some point down the road. jon: the good news here is that kids, at least we're seeing a leveling off in the rate of obesity. i guess the idea is to push it further downhill? >> absolutely. people are talking about the success of good parenting. they're talking about breast feeding. provides better nutrition. we have 50% of the kids being breast fed now which is up from one-third just a decade ago. so there are a lot of things parents can do and we may be starting to see the sealing on childhood obesity. jon: a little personal

responsibility never hurts. dr. marty makary, thank you. >> good to be with you, jon. harris: a little boy crying over a christmas present. did santa leave him a lump of coal? coming up why he is shedding tears. look at that. dry your eyes. it is not so bad. >> what is wrong? why are you crying

? jon: harris, i know you have little girls. harris: i do. jon: the spirit of christmas go